Computing Accounts Receivable Georgia Company reported accounts

Computing Accounts Receivable Georgia Company reported accounts

Question # 00149647 Posted By: kimwood Updated on: 12/11/2015 01:01 PM Due on: 01/10/2016
Subject Accounting Topic Accounting Tutorials:
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Problem 1: Computing Accounts Receivable
Georgia Company reported accounts receivable of $16.5 million at the end of its 2015 fiscal
year. This amount was net of an allowance for doubtful accounts of $1,800,000. During 2016,
Georgia sold $56.5 million of merchandise on credit. It collected $57.9 million from customers.
Accounts valued at $1,980,000 were written off as uncollectible during 2016. Georgia's
management estimates that 10% of the year-end (2016) Accounts Receivable balance
will be uncollectible.
Note: Use minus (-) for negative numbers!
Required:
A. What amount will Georgia report for accounts receivable and the allowance for doubtful
accounts at the end of 2016? Show detailed computations in the space provided below.
Accounts receivable Gross, 1/1/16 ($??,???,??? + $?,???,???)
Description of Transaction here
Description of Transaction here
Description of Transaction here
Accounts receivable balance, 12/31/16
Ending balance in allowance for doubtful accounts according to management's estimate
($??,???,??? X ??%)
B. What is the Doubtful Accounts Expense for 2016?
Allowance for doubtful accounts, beginning of 2016
Description of Transaction here
Amount Required end of 2016
Doubtful accounts expense for 2016
C. How will the accounts receivable and allowance accounts be presented on the balance sheet?
List below the accounts and amounts for the balance sheet section for accounts receivable.


Problem 2: Book Value and Depreciation Calculations
The Golden Broom Cleaning Service acquired new equipment:
Cost $118,400
Residual (Salvage Value) $12,800
Estimated useful Life 8 years or 40,000 Units
Required:
a. Determine the book value of the asset at the end of the THIRD year if the straight-line
depreciation method is used.
b. Determine the depreciation expense for the SECONDyear assuming double-declining balance
depreciation method is used.
c. What would be the depreciation expense for the FIRST year if the units-of-production
depreciation method is used and 6,000 units were produced?
Answers: Computations
a.
b.
c.
No partial credit will be awarded unless the details of your computations are provided in the space aove.

Problem 3: Recording Entries for Bonds
Following is an amortization table for an issue of three-year bonds on January 1, 2014:
Effective Contractual Carrying
Carrying Value at Interest Interest Amortization Value End
Year Beginning of Year Incurred to be Paid of Principal Of Year
2014 $105,154 $8,412 $10,000 $1,588 $103,566
2015 $103,566 $8,285 $10,000 $1,715 $101,851
2016 $101,851 $8,148 $10,000 $1,852 $100,000
Total $24,845 $30,000 $5,155
Required: Place you answer in the shaded boxes below with any computations to the right
A. How much were the bonds sold for?
B. What is the stated (contractual) rate of interest?
C. What is the effective rate of interest?
D. Record the entries necessary over the life of the bonds for the issuance, retirement and yearly interest accrual.
You do not need to record thepaymentof interest.
Date Account Title Debit Credit
1/1/14 Cash The accounts for the first entry have been entered
Premium on Bonds Payable enter the amounts and record the remaining entries.
Bonds Payable Start each entry opposite the date
12/31/14
12/31/15
12/31/16
12/31/16


Problem 4: Stockholders Equity
On March 1, Pluto Corporation declared and issued a 10% stock dividend on its 200,000
outstanding shares of $3 par value common stock. On September 1, Pluto declared a 3-for-1
stock slit and changed its par value accordingly. The market value of Pluto's stock was $20
per share on March 1 and $24 per share on September 1. On February 28, Pluto's stockholders'
equity appeared as follows:
Stockholders Equity February 28:
Common stock (200,000 $3 par shares issued $600,000
Paid-in capital in excess of par 1,800,000
Contributed capital 2,400,000
Retained earnings 1,600,000
Total Stockholders' equity $4,000,000
Required:
In the space below prepare, in good form, the stockholders' equity section after the stock split.
No partial credit will be awarded without detailed computations.
Stockholders' Equity September 1:
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  1. kimwood
    Tutorial # 00144187 Posted By: kimwood Posted on: 12/11/2015 01:01 PM
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    three-year bonds on January 1, 2014:EffectiveContractualCarryingCarrying Value atInterestInterestAmortizationValue EndYearBeginning of YearIncurredto ...
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